Friday, February 18, 2011

Dow gains 570 in 3 weeks

Dow rose another 73 to 12,391 (last seen on Jun 5, 2008), advancers over decliners only 4-3 & NAZ was up 2 (held back by Apple).  Banks were pretty much sideways, but buying at the close gave the Financial Index a gain to a new high since late 2008.


Value 231.16 One-Year Chart for S&P 500 FINANCIALS INDEX (S5FINL:IND)
Change   0.49  (0.2%)

The Alerian MLP Index rose 1.60 to the 377s (after topping 380 in the AM) while the REIT index was up 1 to the 237s (a multi year high).  Junk bond funds gained, creeping back up to the highs reached late last year.  Treasuries dipped, the yield on the 10 year Treasury bond rose 1½ basis points to 3.59%, remaining on a higher plateau then in months previous

Treasury yields:

U.S. 3-month
U.S. 2-year
U.S. 10-year

Alerian MLP Index   ---   YTD

Dow Jones REIT Index   ---   YTD

10-Year Treasury Yield Index   ---   YTD

Oil & gold gave back some of the AM gains.  Oil has hit 92 three times in the last few months where it stalled.  Oversupply is on traders' minds but they are also watching events in the Mideast.  Iran is sending 2 gunboats thru the Suez Canal, one more potential problem.  Gold is up 80 from its recent lows, & getting close to break even YTD.. 

CLH11.NYM...Crude Oil Mar 11...86.18 ...Down 0.18  (0.2%)

GCG11.CMX...Gold Feb 11.......1,388.00 ...Up 3.30 (0.2%)

$$$ Gold Super Cycle $$$  

OIL  (ETF)   ---    YTD

GLD  (ETF)   ---    YTD

Caterpillar (CAT), a Dow stock, said worldwide demand for its heavy construction & mining equipment continues to be strong, with sales growing 49% in Jan. Machinery sales were strongest in North America, where sales grew 58% (off depressed levels) from a year earlier, & Latin America, where sales surged 56%. Engine sales also improved but not as much as machinery, up 23%.  Last month, CAT reported Q4 net income more than quadrupled to $968M as its sales surged 62% to $12.8B.  The stock rose 2.46 to another record high.

Caterpillar   ---   1 year

An Apple Inc iPad

Photo:   Bloomberg

The Justice Dept & FTC are examining whether the Apple (AAPL) new media subscription service violates antitrust laws,  So far, they haven’t decided whether to pursue a more formal investigation as the examination is at a preliminary stage (according to The Wall Street Journal).  Earlier this week AAPL said it was starting a subscription service for publishers to sell newspapers & magazines on the iPad & other devices through the company’s online App Store. AAPL will take a 30% cut of any subscription purchased through its store.  The FTC has been reviewing separate allegations that AAPL is engaging in anti-competitive tactics to restrict rivals in the mobile-advertising market. The stock dropped almost 8 to 350 today after pulling back.(off a record high) in recent days.

U.S. Said to Examine New Apple Service for Violations

Apple   ---   YTD

Unrest in the world goes beyond the Mideast.  Wisconsin & now Ohio are seeing major labor unrest from state employees who are not happy with proposed cutbacks in their luxurious benefits (better than those for many taxpayers). More layoffs are coming (maybe even federal employees) which will add to the bloated unemployment ranks.  For bulls, this is just a technicality.  This is a long weekend, but if there are new developments overseas they will be felt in foreign markets which are open on Mon.

Happy Holiday to all!!

Dow Jones Industrials   ---   YTD

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